See exactly how each payment splits between principal and interest over the life of a loan.
Early in the loan most of each payment goes to interest; over time the balance falls so more goes to principal. The schedule shows your remaining balance year by year until payoff.
Monthly payment
M = P · r / (1 − (1+r)^−n)
Per-period split
Interest_k = Balance_k × r ; Principal_k = M − Interest_k
Estimates only and not financial advice.
Interest is charged on your outstanding balance, which is largest at the start. As the balance shrinks, the interest portion of each fixed payment shrinks too.
Make extra principal payments, choose a shorter term, or secure a lower rate — each reduces the total interest paid over the life of the loan.